Dollar Tree: Truist Securities raises PT to $129 from $127 with Buy rating.

Dollar Tree: Truist Securities raises PT to $129 from $127 with Buy rating.

Truist Securities has raised its price target on Dollar Tree (NASDAQ: DLTR) to $129.00 from $127.00, maintaining a Buy rating on the stock [1]. This adjustment comes following the company's strong second-quarter results, which exceeded Truist's expectations. Dollar Tree reported comparable sales growth of 6.5%, surpassing Truist's estimate of 6.0%. Earnings per share (EPS) were $0.77, including approximately $0.20 of tariff-related timing shifts to the third quarter. Adjusting for this shift, the company delivered approximately $0.55 per share, above Truist's $0.37 estimate.

Truist Securities noted that Dollar Tree is accelerating store-level investments and aggressively repurchasing stock, with multiple one-time costs expected to diminish in 2026. Despite these positive developments, the company's stock experienced a decline in pre-market trading due to broader market conditions and future guidance concerns. This mixed investor reaction highlights the delicate balance between strong earnings performance and external economic factors.

Institutional investors have also shown shifting interest in Dollar Tree. The Canada Pension Plan Investment Board reduced its holdings by 53.2% in the first quarter, while several other institutional investors, including Brooklyn Investment Group and MassMutual Private Wealth & Trust FSB, increased their positions or purchased new stakes [2]. This activity signals a nuanced view among investors, with some reducing their exposure while others are increasing their stake.

Analysts have provided a mix of ratings and target prices for Dollar Tree. Guggenheim has issued a "buy" rating with a $100.00 target price, while Goldman Sachs downgraded the stock from a "strong-buy" to a "strong sell" rating. Truist Financial raised their price target from $109.00 to $127.00, reflecting a more optimistic outlook [3].

In conclusion, Truist Securities' decision to raise the price target on Dollar Tree reflects a positive assessment of the company's recent performance and future prospects. However, the mixed reactions from investors and analysts highlight the need for close monitoring of the company's earnings reports and broader market conditions.

References:
[1] https://www.investing.com/news/analyst-ratings/dollar-tree-stock-price-target-raised-to-129-from-127-at-truist-securities-93CH-4222549
[2] https://www.ainvest.com/news/truist-securities-maintains-hold-rating-raises-pt-50-47-2509/
[3] https://www.marketbeat.com/instant-alerts/filing-canada-pension-plan-investment-board-decreases-stock-holdings-in-dollar-tree-inc-dltr-2025-09-01/